Thank you for the opportunity to help you with your question!
When preparing for a negotiation on valuation, one should undertake
a number of things. For instance, one should have a clear knowledge on what is
fair valuation of the project. This should be measured based on the risks and
the returns one expects to get back. Another thing to consider is the fact that
the investors you are negotiating with need better returns on their
investments. Have in mind something to show them on how they would benefit or
simply the opportunities. Moreover, have in mind what can make the investor pay
more or overpay for the risk likely to occur, or even chances of the investor
paying less than the real price depending on the present risks. All in all, one
should understand that it is not all about the monetary returns expected and
also establish the extent to which one will offer in his/her deal. Proper homework is however very important.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 18th, 2015
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